Rebounding from their 11.8% decline last week, shares of Tempus AI (TEM 6.00%) are starting June on an auspicious note. In addition to the company dropping two announcements over last weekend, investors responded to TD Cowen commentary addressing Spruce Point's recently released critical report of the company that's specializing in artificial intelligence (AI) solutions for the healthcare industry.
According to data provided by S&P Global Market Intelligence, shares of Tempus AI have risen 12% from the end of trading last Friday through 11:37 a.m. ET this morning.
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Investors are breathing a sigh of relief
"Not much to see here folks. Move along." In essence, that was the response to Spruce Point's critical report on Tempus AI that TD Cowen provided on Monday. According to The Fly, analysts at TD Cowen acknowledged that many of the issues that Spruce Point raised were already known and others were exaggerated -- though it did claim that there were some issues worth further investigation.
Along with the commentary regarding the critical report, TD Cowen remained unchanged with its buy rating on Tempus AI stock and $62 price target.
In addition to raising doubts about Tempus AI's financial reporting, the critical report that Spruce Point issued last week questioned the nature of the company's collaboration with AstraZeneca.
Is buying this artificial intelligence stock a genuinely good idea now?
While it's certainly an encouraging sign for current shareholders to see that TD Cowen is unmoved in its opinion despite Spruce Point's report, prospective investors may want to keep their distance for the time being. Investors will likely have to wait until August for the second-quarter 2025 financial results, but in the meantime, those eager to buy shares may want to see if there are additional developments before adding a position.
